Axis Bank on Monday announced a reduction in its benchmark lending rates across all tenors. The private lender has reduced its MCLR or marginal cost of funds-based lending rates by up to 10 basis points or 0.10 percentage point. MCLR is the benchmark rate through which banks lend money to home loans borrowers. The new rates will be effective from August 17, according to the bank's website. After revision, the bank's MCLR stands at 8.55 per cent for the one-year tenor from 8.65 per cent earlier.

The announcement by banks had come after the Reserve Bank of India's Monetary Policy Committee (MPC) cut the repo rate by 35 basis points to 5.40 per cent, the lowest in over nine years. The repo rate was slashed for the fourth consecutive time by the MPC. Repo rate is the interest rate at which the RBI lends money to commercial banks.